The EY-CII report titled “Insurer of the Future” has recommended insurance companies to use digital technology efficiently to expand their footprint.
“Technology has played an important role impacting customers, intermediaries and insurers in a holistic approach to connect with customers digitally in each stage of the value chain including product design, marketing or sales, underwriting or pricing, customer servicing and claims management. However, insurance has been slow as compared to the rest of the financial services in adopting the new technology,” states the report.
From acquiring a new customer to settling claims, insurers can use digital technology to grow their business in a cost effective way.
Rohan Sachdev, Global Insurance Emerging Markets Leader and Partner, EY India says, “The Indian insurance sector has evolved and in order to realize the full potential, the industry must focus on aspects of technology that will fundamentally change the way customers know and interact with each other and the insurers. With increasing capital infusion and the arrival of new technologies, insurers have been readily adopting digital solutions to improve customer experience. With the rising population and changing demographics, insurers and intermediaries will have to constantly innovate to remain relevant.”
Here are a few key takeaways from the report:
• Internet of Things (IoT) can play a crucial role in assessing and pricing the risk of loss
• Robotic Process Automation (RPA) that replicates human behavior and executes non-judgmental sequence of activities can help insurers to automate client servicing activities.
• Insurers through collaboration with third party data service providers can make informed strategy and policy related decisions for insurance risk-management and fraud monitoring.
•Blockchain technology is currently used for Bitcoin payments. However, it has the potential to eliminate error and detect fraud by providing a decentralized digital repository to verify the veracity of customers
